The Nevada firm that was awarded a contract by Hawaii Electric Light Co. to develop a 25-megawatt geothermal energy project on Hawaii’s Big Island withdrew from contract negotiations with the utility because the strict requirements of the request for proposals was not economically viable, the head of the firm’s Hawaii operations told PBN.

HELCO selected Ormat Technologies on Feb. 24, 2015, based on the Nevada firm’s ability to meet price levels and performance standards, and started contract negotiations.

“Ormat made considerable efforts to reach an agreement with HELCO and we are disappointed that such an agreement could not be reached,” Michael Kaleikini, senior director for Hawaii affairs for Ormat, told PBN in an email. “Ormat greatly values our long standing relationship with [Hawaiian Electric Co. and its subsidiary, HELCO] and we remain committed to helping the utility reach its ambitious renewable energy goals.”

“The Big Island holds significant potential for additional geothermal development, and such development should be key in any future renewable energy mix,” Kaleikini said. “Ormat is hopeful that HELCO will issue a new geothermal RFP in the near future, with more favorable terms that could enable sustainable development of additional geothermal resources.”

The lengthy process of selecting a geothermal developer for the project began in 2012, and the project started out as a 50-megawatt facility planned for the east side of the island.

The subsidiary of Hawaiian Electric said that it will continue its efforts to include geothermal in its analysis of potential future resource options as part of its new energy plans.

Nearly 50 percent of the power on the Big Island is generated from renewable resources, including hydro, wind, rooftop solar and geothermal.